Sinclair - Legarde's IMF Disaster Forces Bernanke Out of Fed
Today legendary trader Jim Sinclair told King World
News that Lagarde’s IMF Cyprus disaster, in stunning fashion, has now forced
Chairman Ben Bernanke out of the Fed. Sinclair, who was once called on by
former Fed Chairman Paul Volcker to assist during a Wall Street crisis, takes
readers on a trip down the rabbit hole that has become know as “The Cyprus
Catastrophe” in this extraordinary and exclusive interview:
Eric King: “Remarkably, just a day and a half
ago you stated on King World News that ‘Putin has faced down the International
Monetary Fund, which by the way is located in Washington, DC, and is in fact
Washington itself. So in the sense of a Cold War, you have Washington vs
Moscow, and Moscow won this round. The bottom line here is Lagarde took
on Putin, but Putin has checkmated both her and the IMF the same way a Russian
grandmaster chess player would destroy his opponent.’ Within hours of KWN
reporting that news, Lagarde's apartment was raided by police and she is now scrambling.”
Sinclair: “The important point is, how long has
this case been going on in which there was a police raid on the Lagarde’s
apartment? This is a 20-year old case, making it look a little less like
just a coincidence. I would also add to that I don’t think it’s any
coincidence that the Chairman of the Federal Reserve has now indicated the
possibility that he will not be reappointed, and that he will not accept the
reappointment....
“In truth, the IMF disaster which has just taken place
in Cyprus is comparable to the assassination of Archduke Ferdinand that started
World War I. This is a major event in history. We have the
mainstream media and some talking heads telling people that ‘Cyprus is a
tempest in a teapot.’ That is completely false.”
Eric King: “This IMF disaster which has
occurred, and obviously Lagarde is now being dealt with, but going forward you
talked about the possibility of destabilization in the Western world. You
are saying they can’t make a misstep here, and what about this Bernanke
development?”
Sinclair: “The gamble was they were going to
shift the onus of the funds required from the busted banks to the depositors
and away from central banks. That would have been to the depositors, and
away from QE. This is also being proposed in New Zealand and in Spain,
but in tiny, negligible amounts. Obviously no amount of theft is
acceptable, but the theory coming out of Cyprus was a 10% theory, and that is
enormous money.
It was a historic mistake because what Mrs. Legarde
and the IMF have done is potentially ruined all of Bernanke’s work. It
has also potentially ruined all of the work of the central banks which have
been doing QE in order to maintain sovereign solvency.
If she (Lagarde) had succeeded, the ease would have
been to the governments, and the pressure would have been to the
depositors. Up to now what has been done is to insure the bank depositors
without them having to lose. This was the ‘Super Glue’ to hold together
the possibility of an economic recovery. That’s what has been put into
risk because of this debacle by Mrs. Legarde and the IMF in Cyprus.
This police raid and the 20-year old case is tied
directly to her colossal failure in Cyprus. It is also directly tied to
Bernanke’s indication that he wouldn’t seek to be Chairman of the Federal
Reserve after his term is up.
Again, what the IMF’s catastrophe in Cyprus has done
is put into jeopardy every single dollar that any central bank has put in to
maintain sovereign solvency. This is enormous. The IMF originally
telling Cyprus to ‘Go to hell,’ has in fact said to the world, ‘Go to
hell.’ The Western financial world may now indeed go to hell, and Fed
Chairman Bernanke knows it.”
Eric King: “Just so I understand this, the
degree of damage that has been done because of the IMF disaster in Cyprus now
has Bernanke saying, ‘I want out.’”
Sinclair: “This historic event is one of the
single largest and most important in my 50+ years of being involved in
markets. It is as serious as what I have said, and the Chairman of the
Federal Reserve is saying, ‘They are going to screw up all of my work; to hell
with them, I don’t want to be Chairman when this hits the fan.”
Eric King
